Stocks are expected to open little changed Wednesday, a day after the S&P/TSX composite index suffered a triple-digit loss, as oil prices climb.

Toronto stocks tumbled yesterday as investors deserted companies that could be affected by a decison by Ottawa to temporarily halt the preparation of advance tax rulings to companies considering starting or converting to income trusts.

Crude-oil prices rose early Wednesday, increasing $1.22 to US$67.42 a barrel amid concerns that hurricane Rita, which strengthened into a Category 3 storm after lashing the Florida Keys, could smash into key oil facilities in Texas as it heads toward the Gulf of Mexico.

In today’s economic news, Statistics Canada said surging auto sales, combined with smaller increases in the food, furniture and pharmacy sectors drove total retail sales to a new high in July.

The government agency said retailers sold $31.3 billion worth of goods and services in July, up 1.5% from June.

There are no major U.S. economic data are scheduled for release Wednesday.

In today’s earnings news, Morgan Stanley said its net profit fell 83% due to a US$1 billion charge from the company’s planned sale of its aircraft-financing business. Revenue was up 29%.

The New York financial-services firm said it earned US$144 million, or 13¢ a share, compared with US$837 million, or 76¢ a share, a year ago. Net revenue for the quarter was US$6.95 billion, exceeding estimates, compared with US$5.40 billion a year earlier.

In insurance news, American International Group issued its initial third-quarter catastrophe estimate, most of which is due to hurricane Katrina, of approximately US$1.1 billion.

Overnight in Asia, Japanese stocks rose to a fresh four-year high.

The Nikkei 225 index rose 48 points, or 0.37% to 13,196.57 points on the Tokyo Stock Exchange, its highest level since June 21, 2001.

In Hong Kong, the Hang Seng Index fell 18.24 points, or 0.1%, to 15,223.62.

On Tuesday, the S&P/TSX composite index sank 121.21, or 1.10%, to 10,903.52.

In an unexpected move, finance minister Ralph Goodale said Monday that the Canadian government won’t provide advance tax rulings to companies considering starting or converting to income trusts, which could amount to a temporary freeze on the practice.

The news had a negative effect on several companies that were considering converting, or where speculated to be converting, part or all of their business into an income trust.

CI Financial dropped $2.85, or 11.09%, to $22.85.

TSX Group, which runs the country’s major exchanges, fell $5, or 11.10%, to $40.05.

The junior S&P/TSX Venture composite index finished down 7.62, or 0.37

In the U.S., the Federal Reserve lifted its key rate a quarter point to 3.75% and suggested more rate hikes are coming. Investors had hoped that the Fed would back off its current trend of lifting rates.

The Dow Jones industrial average fell 76.11 points, or 0.72%, to 10,481.52. Broader stock indicators also moved lower. The S&P 500 index lost 9.68, or 0.79%, to 1,221.34, and the Nasdaq composite index dropped 13.93, or 0.65%, to 2,131.33.